Laboratory Corporation of America acquired Covance for $6.1 billion.Covance is a contract research organization (CRO) that provides services for drug development and animal testing.
Both companies’ boards have approved the deal.
Covance shareholders will receive $75.76 in cash and 0.2686 shares of LabCorp for each Covance share.
The deal will allow LabCorp a larger international audience, as well as access to significant clinical trial support business. Revenue is expected to be broken down as 32 percent from managed care, 29 percent from pharmaceutical and biotech companies, 22 percent from commercial clients, 12 percent from Medicare/Medicaid, and 5 percent from private patients.
For further deal information visit Current Agreements (subscription required)
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